In a corporate rescue act, Jawahar Goel, promoter and managing director of Dish TV India Ltd extended a substantial portion of his equity in Dish TV as security for the credit facilities availed by Subhash Chandra Group.

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Dish TV is a direct to home (DTH) entertainment service provider, and the promoter family, led by Jawahar Goel, brother of Essel Group promoter Subhash Chandra, now owns 30.37 percent in the company.

"The Group has also thanked Jawahar Goel, Promoter & Managing Director of Dish TV India Ltd for extending support, in the form of a substantial portion of his equity in the mentioned listed entity, as security for the credit facilities availed by Subhash Chandra Group," Subhash Chandra Group official spokesperson Ronak Jatwala said in a statement.

"The group is confident and fully committed to return the mentioned security cover back to Shri. Jawahar Goel and his family. The Group also wishes to iterate that Shri. Jawahar Goel, as the rightful owner of the equity stake in Dish TV India Ltd., had only stepped forward to offer support, and has no financial stress whatsoever in his personal capacity," the statement added.

Further, the Essel Group chairman denied all the speculations and rumours, pertaining to the shares being released from the lenders at a lower price and sold to third party investors at higher price points.

"These speculations are absolutely baseless and incorrect, and the group has no such intentions whatsoever," it said.

Last year, Yes Bank said it had acquired over 24 percent stake in Dish TV following invocation of pledged shares due to debt default by the DTH service provider and other group firms.

Yes Bank Limited, pursuant to invocation of pledged shares, has acquired 44,53,48,990 equity shares of Dish TV India Limited constituting approximately 24.19 percent of the post-issue paid-up share capital as at March 31, 2020, it said in a regulatory filing.

Shares were acquired on invocation of pledge subsequent to default/breach of terms of loan to Dish TV India Limited, it said.

Further, Yes Bank said there was default/breach of terms of credit facilities sanctioned by it to Essel Business Excellence Services, Essel Corporate Resources, Living Entertainment Enterprises, Last Mile Online, Pan India Network Infravest, RPW Projects Private, Mumbai WTR and Pan India Infraprojects.

The companies are part of the Subhash Chandra-led Essel Group.

Media mogul Chandra has been selling assets to pare down debt. In 2019, the tycoon and his group sold most of their stake in crown jewel Zee Entertainment Enterprises Ltd, India’s largest publicly traded television network.

(Edited by : Jomy)

First Published:Apr 22, 2021 5:26 PM IST